This paper studies the social desirability of agglomeration and the efficiency arguments for policy intervention in a … stable equilibria with partial agglomeration of firms in addition to core-periphery equilibria for intermediate levels of … trade costs. Our central finding is that the market equilibrium is characterised by over-agglomeration for high trade costs …

competition models. The agglomeration rent which accrues to the mobile factor in the core region can be taxed. Moreover, a tax … addition to core-periphery equilibria, exhibits stable equilibria with partial agglomeration. We show that a tax differential … may arise as an equilibrium of the tax game even when there is only partial agglomeration and the mobile factor does not …

We use disaggregated data on Chilean plants, and the Chilean input-output table to examine the impact of agglomeration … downstream customers also has no effect. Agglomeration effects are stronger for small than for large plants. …

and city population. This paper embeds a black box agglomeration economy within a more neoclassical general equilibrium … and wages move in the same direction under neo-classical assumptions, agglomeration economies in production, congestion in … variables, although some of these effects are ambiguous in the production agglomeration model. If natural advantage and housing …

into account. Our analysis furthermore implies that market-size based agglomeration forces are too weak to overcome the … a low elasticity of substitution) is very strong. This suggests that further agglomeration forces have to be invoked to … explain the agglomeration of economic activity observed in the real world. …

The core-periphery model by Krugman (1991) has two 'dramatic' implications: catastrophic agglomeration and locational … and easily reversible transition from symmetry to agglomeration. …